New Opportunity to Weigh-In on Proposed Changes to Federal Overtime Rule


The U.S. Department of Labor (the Department), which has already indicated that it will change the Obama Administration's proposed federal overtime rule, announced in July 2017 that it will be accepting public comments regarding the proposed rule as the first step of the revision process.  Many business groups objected to the proposed rule when it was announced, saying the extension of overtime to an estimated 4.2 million more workers would do more harm than good once what they anticipated to be job losses and lower salaries for others are calculated. The Department asked employers to share in their comments how they prepared for the proposed new rule, and the effect it would have had on their businesses.

The proposed new rule is currently on hold by Order of a federal Judge, and the matter is now on appeal filed by the Obama Administration a few weeks before President Trump's inauguration. The $47,000+ proposed minimum salary for most employees to be exempt from overtime is the same in the Obama Administration’s proposed new rule regardless of employer location, employer size or industry, and that is one of the areas likely to change when the Trump Administration submits a new proposed rule. The $47,000+ minimum salary figure may also change and end up closer to the current $23,660 federal number (higher in some states, like New York, as per state law-currently $37,830). Further, the Department has indicated it might consider eliminating the minimum salary altogether and base the exemptions to overtime on duties only.

We will keep you up to date as this issue progresses. In the meantime, please do not hesitate to contact us if you have any questions or would like assistance in submitting a comment.